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2022 Update: EB-5 is back! What every real estate and hotel developer needs to know about the program’s renewal

31 March 2022
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The hotel development and financing world is buzzing with the news that the EB-5 program has been renewed, creating new opportunities for upcoming projects. My partner David Sudeck and I have written the short update below to help get you up to speed.


EB-5 Reform and Integrity Act of 2022
EB-5 is revitalized and renewed

by Jim Butler & David Sudeck

In case you haven’t heard, EB-5 is back! On March 15, President Biden signed the Omnibus Spending Bill, which included the “EB-5 Reform and Integrity Act of 2022,” sponsored by Senators Pat Leahy (D-VT) and Chuck Grassley (R-IA). This bipartisan bill restores viability to EB-5 by reauthorizing the lapsed Regional Center Program, a component essential to the success of EB-5.

What’s different about EB-5 this time around?

While the basics of the program remain the same–foreign investors provide a specified amount of capital to development projects that create American jobs, and are put on a fast track to green cards for themselves and their families–some aspects of the Regional Center Program have changed. The Regional Center Program, which was authorized until June 2021, allows investors to pool their resources to finance new projects and enterprises. Regional centers also have different requirements for the types of jobs created by a development project.

The new bill raises the minimum investment in qualified projects to $1,050,000, except in Targeted Employment Areas (TEAs) where the investment minimum will be $800,000. TEAs are areas that the program prioritizes for job creation, usually rural or areas with high unemployment–where the investment minimum remains $800,000. The new minimum investment requirement will hold for the next five years, and then will be subject to reevaluation. The bill also puts a premium on investment in rural areas by expediting visa applications for investors involved in those projects; ten percent of EB-5 visas are set aside for these investors. Infrastructure projects are also subject to lower minimum investment requirements, but do not qualify for expedited visa processing.

Regional centers are now the only way for investors to pool their resources, and existing centers will need to refile to comply with new requirements. They cannot be owned by non-US citizens, and will be subject to additional regulatory filings, multiple certifications, audits, inspections, filing fees and compliance. Experts expect that these changes will greatly reduce the number of regional centers to those who truly intend to be active in the program.

Why should developers be paying attention?

The renewed EB-5 program revitalizes a source of hard-to-find financing for new construction and development projects. We expect high-quality projects, like hotel and other real estate projects, to continue to be favored by foreign investors. The funds obtained through this program are relatively low-cost, in the six- to seven- percent range–much cheaper than typical mezzanine financing.

There’s a lot of new energy and excitement following these developments in the EB-5 program, and we see that attitude reflected in two big conferences scheduled for early April: The EB-5 & Global Immigration Expo in Miami on April 7-8 and the IIUSA Conference in Orlando on April 11-13. We hope to see you there!

More than ever, the key to successfully financing a project with EB-5 funds will hinge on finding a reliable source of financing to raise capital, and knowledgeable advisors who can help developers avoid costly misadventures. Our Global Hospitality Group® has closed $1.5 billion in EB-5 financing, and has a 100% successful track record on deals with signed term sheets.

We will be publishing further articles exploring the impact of the revitalized EB-5 program over the next several weeks—please reach out if you have questions you would like to see answered.

Get help evaluating and executing on EB-5 financing

We have a lot of practical experience in helping our developer clients raise EB-5 funding. If you would like some help to evaluate what strategy might be best for you, please contact us. There is no cost for an initial discussion.

Jim Butler, +1-310-201-3526 or
David Sudeck, +1-310-201-3518 or

For more information about EB-5 financing, including the latest updates, check the “EB-5 Financing” section of our Hotel Law Blog.

For more on the background of the EB-5 program, some best practices we’ve observed through our work with clients, and other EB-5 information, you can start with these popular articles:

The Hotel Developer’s EB-5 Handbook

FAQs: Essentials of EB-5 construction financing for developers

EB-5 construction financing term sheet for top developers

More than $1.5 billion of EB-5 construction financing closed for JMBM clients

Are hotels still the darling of EB-5 financing?

The 5 questions every developer is asking about EB-5 financing

Tips to avoid the 6 most common mistakes developers make with EB-5

Why you do NOT want to form your own regional center

What does JMBM do to help with EB-5 construction financing?


dsu_photo_2017David Sudeck is a partner at JMBM, and a senior member of its Global Hospitality Group® and real estate department with extensive experience handling all types of commercial residential properties, including the complex issues associated with hotels, resorts, vacation ownership properties, restaurants, golf courses and spas. David represents clients in the purchase and sale, development, construction, financing (with extensive experience in EB-5 financing), leasing, and sale-leaseback of properties, and advises them on their operations, including management and ADA compliance issues.

Contact David at +1-310-201-3518 or

Picture of Jim ButlerThis is Jim Butler, author of and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.

JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or to discuss how we can help.

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